Billy Beck notes the loss of an entire line of aircraft engine replacement parts, due to the inability of the manufacturer to obtain product liability insurance.
Some years ago, I read an article that pointed out how long it had been since a new engine design had been introduced into the small aircraft market – again, due to product liability concerns. Liability attorneys tend to go after anyone with money when an accident occurs. Even if it isn’t the engine at fault in a crash, how can the manufacturer prove it in court? Worse yet, how often can they afford to try to prove it in court?
Because of this, liability insurance costs go up, the the point where the business is no longer profitable. It’s not just aircraft engines – several states are losing doctors because of malpractice insurance costs.
Tort reform is long overdue.